Increasing the revenue is always a challenge. In e-commerce, for example, this is happens through three basic possibilities: increase in audience, increase in product mix and growth in conversion rate. In the current economic scenario, it is easy to worry about the low-margin and hard to achieve loyalty. And in this concern, one could pass by the greatest treasure of the company: the data. Perceiving this movement and shifting the focus to take advantage of the data is to turn it into money. When used well, the data can be the solution to generate revenue and save money. As we mentioned a few days ago, traditional campaigns are dead. Modern marketing is an exchange of data.
Data is the new money
Your data is a valuable resource and should be used in the company’s benefit. Observ your data sources and explore them to improve the relationship, generate loyalty and retain customers. But that’s not news to you. What you might not know is that the same data can be used to train the team and detect up-sell and cross-sell opportunities that activate the customer base, showing that the company understands the buyer’s behavior and wishes. Thus, you can develop custom campaigns and promotions.
Save money using data
Your data is full of valuable information that can help you control your spending by allocating resources and time to the fullest. Anallyzing your operational information, it is possible to direct marketing campaigns to encourage the purshase of different products by customers who are inclined to it and improve product quality. This data analysis provides fault identification to optimize internal processes when needed, also reducing maintenance costs.
Since the implementation of the lifecycle project, Bibi Calçados managed to reduce their investment in traditional media by 64%, significantly saving their marketing budget resources by integration data from different sources such as industry, brand and multi-brand stores, franchises and e-commerce.
From potential to reality
The competitive advantage provided by data has always existed, it just took a while to be converted into money. When Big Data is plays a role in the planning – in growing volumes of internal information and new sources such as mobile, cloud and social media – the competitiveness of enterprises goes to a new level. We are not in Kansas anymore. And you are willing to invest in data and everything that surrounds it, you will certainly be interested in getting the most of them to boost financial returns. With that in mind, we selected some essential tips for you to follow the yellow brick road.
Step 1: Delivering value
First, determine what type of data will have the greatest impact on your ultimate goal, using the data that has the most potential to increase revenue/profit or reduce costs. Often this process will require research and preliminary analysis to find patterns in customer behaviors as well as buying patterns.
In addition to presenting quick return, this approach will also generate tangible results that will support and justify the expansion of the strategy to other departments and projects.
Step 2: The data source
Now you need to identify the data itself and where it can be found for collection. Certain kinds of data may be more difficult to obtain than the information in the company’s CRM, but aligning the existing data from Customer Service, the brand’s app and search history will substantially increase the potential for monetization. The key is to cross the data on purchase history (physical and online), and to analyze how much of the fan base on social networks really are customers and create specific strategies for them, for example.
Step 3: Is your data ready to be monetized?
Inconsistencies and redundancies can compromise the quality of data, which often come from various sources. You can only take full financial advantage of data once you ensure the integrity of your information assets.
If the goal is to make money from your data crossing customer behavior patterns with a more targeted offer, you will need to seek information in CRM, stores and the consumer’s online interaction with the brand. All this with the support of technology and a strategic partner for the venture.
Step 4: multilevel integration
The data monetization opportunities exist at various levels of the business and so it is essential that everyone involved participate actively in the gathering of information to increase revenue and reduce costs intelligently.
Executive management, for example, could analyze high-level data to track critical performance metrics related to profitability, while analysts seek data on individual operational processes to identify areas that need improvement, maximizing productivity. The operational level could capture and use the information to improve interaction with customers, bringing the experience to new levels of satisfaction, loyalty, and retention.
Allowing the staff to have access to data tends to have a positive impact on overall performance, as well as collaboration between companies has further potential for monetization, making the value of information shared with partners and customers grow exponentially. The power of sharing should not be underestimated.
Large companies collect large amounts of information about everything and that amount gets to be so plentiful that often does not receive its due attention.
The emeralds are everywhere, but only those who are paying attention to data will find out what’s behind the curtain.
With some data and inspiration: Data Monetization Strategies – Information Builders
Content trusteeship and collaboration: Maria José Sebastiany